5 days ago
Trump signs order to double steel, aluminium import tariffs to 50%
New Delhi: A 50% tariff on steel and aluminium imports into the United States went into effect on Wednesday, doubling the previous rate as President Donald Trump cited national security concerns for the dramatic escalation in trade protections.
The new tariff rates, increased from an earlier 25% rate, were announced by Trump in a statement on Tuesday. The president claimed legal authority to impose the tariffs through Section 232 of the Trade Expansion Act of 1962, which allows the president to address national security risks arising from imports.
'In my judgement, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminium in the United States market and thereby undercut the competitiveness of the United States steel and aluminium industries,' read Trump's statement released by the White House.
Trump said the earlier 25% tariff rates, first announced in February and implemented on March 12, had helped America's steel industry but had not enabled companies to maintain the capacity needed to meet national defence needs.
'I have determined that increasing the previously imposed tariffs will provide greater support to these industries and reduce or eliminate the national security threat posed by imports of steel and aluminium articles and their derivative articles,' Trump said.
The tariff increase comes amid broader trade disputes at the World Trade Organisation. Several countries, including India, have formally challenged the US measures, characterising them as 'safeguard measures' that violate WTO rules and threaten retaliatory action.
In May, India formally notified the WTO that it viewed America's tariffs on steel and aluminium as safeguard measures and indicated it could suspend 'concessions and other obligations' given to the US and that it retains the right to enforce retaliatory measures. On May 22, America rejected India's characterisation of the tariffs as safeguard measures and refused to engage in talks on the matter.
The introduction of tariffs has proven controversial within the US. The America Iron and Steel Institute, an industry group, has welcomed the increased tariffs as a necessary measure to protect domestic producers from cheaper foreign competition. However, manufacturers using steel as input for production have publicly raised concerns that more expensive steel will impact competitiveness across other domestic industries.
For India specifically, the consequences are direct and substantial. According to the Global Trade Research Institute (GTRI), a New Delhi-based research group, India exported $4.56 billion worth of iron, steel, and aluminium products to the US in FY2025, with key categories including $587.5 million in iron and steel, $3.1 billion in articles of iron or steel, and $860 million in aluminium and related articles.
'These exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters,' the GTRI said in a brief.
